6 ms·

The truth is: most companies have no interest in providing you a big bump as their additional input will not dramatically improve your output, if at all. If you

The truth is: most companies have no interest in providing you a big bump as their additional input will not dramatically improve your output, if at all. If you want to market yourself better - then do it where it counts: get out there and interview. At my last job, I was being paid at a mid-level admin rate but was expected to do senior-level engineering and even architectural work (I had proven that I could). The best they could do is 3-10% (and even that was pulling teeth) per year. I had already been there several years and it would have taken me several more to finally make what I should have been making all along... minus the opportunity for raises based on that income. In the end: I went out, interviewed, and negotiated a salary elsewhere at such an insanely high increase (just under 40%) that I figured my then-current employer would just show me the door and say thanks for my time. Much to my surprise, despite having a hard time squeaking out a few extra K before, they were not only offering to match my offer but exceed it by an appreciable margin. The moral of the story: a lot of employers will aim to profit on your complacency. Period. It is more profitable to pay you the least as possible as long as possible. They got damn good (if I do say so myself) engineer at a steep discount. Even if I had taken their offer (which I didn't), it would have taken me a couple more years just for my pay to normalize to what it should have been all along.

tptacek 16y ago
It's true that your negotiating power is at its zenith when negotiating in a seller's market for a new job, and at its nadir when negotiating for a raise in a job you already have. But if you want to keep your job, you still might as well play the game right.
btilly 16y ago
In that situation, don't ever take the counter-offer. Seriously. Everything else you were unhappy about before will still be true. They will now have a chip on their shoulder about you. And furthermore, part of the reason why they will pay more is that they don't have a replacement for you. But now that they know that you are a risk for leaving their top priority will be to have you transfer your knowledge, to hire a replacement, and then to fire you as soon as they feel that they are in a good position to.
- tptacek 16y ago
  Be very wary of taking the counteroffer. They don't have a chip on their shoulder. Necessarily. But they have a very rational concern that you, unlike your peers, are particularly likely to bolt. Many forms of compensation, including bonuses, training, and senior positions on teams, are viewed in terms of investments that pay off or lose depending on whether you're retained. I wasted a year and a half or so of my career by accepting a counteroffer (I didn't really want to leave that badly) and getting marginalized. That doesn't mean every counteroffer is bad, but I would be up-front and overt about the concern that the "counteroffer" you've been offered is really more of an "option" on you, so that you'll leave on the company's terms and not your own.
  - m0nastic 16y ago
    I had a scenario a few years back where I interviewed with another company in which the person I interviewed with was friends with someone I worked with. As part of their due diligence, they asked that person about working with me, and that person then proceeded to tell my boss that they heard I was looking for another job. My boss then spent the next few months transitioning all of my responsibilities away to other managers, basically leaving me with no responsibilities. Thankfully, I transitioned back to being a consultant, and all of them were fired; but you don't even need a counter-offer to be marginalized. Sometimes, just talking to another company is enough to do it. So be wary.
    - eschutte2 16y ago
      Did you write on your resume, "Do not contact my current employer without my permission?"
      - m0nastic 16y ago
        I did. I also explained that the place I worked had a very strict policy forbidding any employee from serving as a reference (the only thing we're allowed to do is give them an 800 number to call which will verify employment) The person I worked with was apparently a really really good friend of the person I was interviewing, so I assume it just came up in conversation, like "Hey, do you know so-and-so. They're applying for a job here." Amusingly, the guy actually did speak well of me to his friend, he just then proceeded to notify my boss that I was interviewing at another company.
euroclydon 16y ago
Everyone says, "don't take the counter offer." Here's what I'm wondering: Why can't rank-and-file employees negotiate some type of agreement where they get paid to stay? It doesn't make any sense that companies put a "value" on retention, but don't put a $$$ value on it.
- tptacek 16y ago
  You can; it's called "yearly performance review".
- ScottBurson 16y ago
  I think employers are missing an opportunity by not doing this. In a high-tech business, an employee with several years' experience with the company's products can be worth several times as much as one who has been around only a few months to a year, even if the latter is qualified and talented -- some of these products are just so complex it takes years to learn their ins and outs. It only stands to reason that retention bonuses for the long-time employees would be money well spent. And I mean substantial retention bonuses, on the order of 100% of salary. I don't mean for every employee, but for the stars.
- anamax 16y ago
  > Why can't rank-and-file employees negotiate some type of agreement where they get paid to stay? It's called salary and other compensation. > It doesn't make any sense that companies put a "value" on retention, but don't put a $$$ value on it. You're missing the point. Once someone has accepted an offer from somewhere else, they're very likely to leave soon even if they accept a counter-offer. As a result, money spent on them is wasted. Effective retention spending happens before people decide to leave.
  - wisty 16y ago
    I don't think that's they point they are missing. They know that an employees who shops is "damaged goods", but they don't know why employers don't give pre-emptive raises to everyone, and avoid the confrontations altogether. The point they are missing is, that companies know they can skimp on 'retention bonuses', because only a few employees will shop for a better offer. Would you rather hire a hard-working, but downtrodden slave; or a hired gun who's only staying because you are paying them what you are worth? Exactly. The only solution is for enough employees to churn their way to decent positions, so companies are forced to assume that an underplayed employee will quit.

tptacek 16y ago

It's true that your negotiating power is at its zenith when negotiating in a seller's market for a new job, and at its nadir when negotiating for a raise in a job you already have. But if you want to keep your job, you still might as well play the game right.

btilly 16y ago

In that situation, don't ever take the counter-offer. Seriously. Everything else you were unhappy about before will still be true. They will now have a chip on their shoulder about you. And furthermore, part of the reason why they will pay more is that they don't have a replacement for you. But now that they know that you are a risk for leaving their top priority will be to have you transfer your knowledge, to hire a replacement, and then to fire you as soon as they feel that they are in a good position to.

tptacek 16y ago
Be very wary of taking the counteroffer. They don't have a chip on their shoulder. Necessarily. But they have a very rational concern that you, unlike your peers, are particularly likely to bolt. Many forms of compensation, including bonuses, training, and senior positions on teams, are viewed in terms of investments that pay off or lose depending on whether you're retained. I wasted a year and a half or so of my career by accepting a counteroffer (I didn't really want to leave that badly) and getting marginalized. That doesn't mean every counteroffer is bad, but I would be up-front and overt about the concern that the "counteroffer" you've been offered is really more of an "option" on you, so that you'll leave on the company's terms and not your own.
- m0nastic 16y ago
  I had a scenario a few years back where I interviewed with another company in which the person I interviewed with was friends with someone I worked with. As part of their due diligence, they asked that person about working with me, and that person then proceeded to tell my boss that they heard I was looking for another job. My boss then spent the next few months transitioning all of my responsibilities away to other managers, basically leaving me with no responsibilities. Thankfully, I transitioned back to being a consultant, and all of them were fired; but you don't even need a counter-offer to be marginalized. Sometimes, just talking to another company is enough to do it. So be wary.
  - eschutte2 16y ago
    Did you write on your resume, "Do not contact my current employer without my permission?"
    - m0nastic 16y ago
      I did. I also explained that the place I worked had a very strict policy forbidding any employee from serving as a reference (the only thing we're allowed to do is give them an 800 number to call which will verify employment) The person I worked with was apparently a really really good friend of the person I was interviewing, so I assume it just came up in conversation, like "Hey, do you know so-and-so. They're applying for a job here." Amusingly, the guy actually did speak well of me to his friend, he just then proceeded to notify my boss that I was interviewing at another company.

euroclydon 16y ago

Everyone says, "don't take the counter offer." Here's what I'm wondering: Why can't rank-and-file employees negotiate some type of agreement where they get paid to stay? It doesn't make any sense that companies put a "value" on retention, but don't put a $$$ value on it.

tptacek 16y ago
You can; it's called "yearly performance review".
ScottBurson 16y ago
I think employers are missing an opportunity by not doing this. In a high-tech business, an employee with several years' experience with the company's products can be worth several times as much as one who has been around only a few months to a year, even if the latter is qualified and talented -- some of these products are just so complex it takes years to learn their ins and outs. It only stands to reason that retention bonuses for the long-time employees would be money well spent. And I mean substantial retention bonuses, on the order of 100% of salary. I don't mean for every employee, but for the stars.
anamax 16y ago
> Why can't rank-and-file employees negotiate some type of agreement where they get paid to stay? It's called salary and other compensation. > It doesn't make any sense that companies put a "value" on retention, but don't put a $$$ value on it. You're missing the point. Once someone has accepted an offer from somewhere else, they're very likely to leave soon even if they accept a counter-offer. As a result, money spent on them is wasted. Effective retention spending happens before people decide to leave.
- wisty 16y ago
  I don't think that's they point they are missing. They know that an employees who shops is "damaged goods", but they don't know why employers don't give pre-emptive raises to everyone, and avoid the confrontations altogether. The point they are missing is, that companies know they can skimp on 'retention bonuses', because only a few employees will shop for a better offer. Would you rather hire a hard-working, but downtrodden slave; or a hired gun who's only staying because you are paying them what you are worth? Exactly. The only solution is for enough employees to churn their way to decent positions, so companies are forced to assume that an underplayed employee will quit.